Residential property bequeathed to eight beneficiaries was subsequently sold and realised a capital gain of £80k. Disposal proceeds of £320k.
Each beneficiaries share of the disposal proceeds is £40k and a gain of £10k. There will be no CGT to be paid.
Gov.UK guidance says:
You still need to report your gains in your tax return if both of the following apply:
- the total amount you sold the assets for was more than 4 times your allowance
- you’re registered for Self Assessment
Some of the beneficiaries are registered for self assessment. What is the value to determine whether the disposal should be reported, the total amount the property sold for or each beneficiaries share of the sale proceeds?
My interpretation of HMRC manuals is that it is each individuals share of the disposal proceeds that is the value to be taken to decide whether the disposal needs to be notified to HMRC. Am I correct?